The rise in insurance premiums in 2025 –the new year brings some changes

Jan 24, 2025 | News, The Agency

 

 

The news at the end of 2024 was disturbing: ‘Health insurance will be more expensive in 2025′, ‘Insurers are applying the biggest price increase in history to car insurance’, ‘Insurers are preparing a 20% increase in health insurance policies for 2025’. At Dylsi, an exclusive AXA agency, we proactively offer you a personal and professional analysis of what you can expect as an insurance policyholder, especially in the field of health insurance and in other highly relevant branches, as well as the reasons that justify possible price adjustments. We also explain how you can mitigate the effect of premium increases. First of all, 2025 marks a year of essential changes in the insurance sector in Spain. Forecasts indicate a general increase in premiums in several lines of business, from health to car insurance. This trend can be attributed to economic and structural factors affecting individuals and companies.

Reasons for the increase in insurance premiums

Increases in insurance premiums are not arbitrary but the result of a constantly evolving economic and social environment. Inflation, geopolitical tensions, and changes in consumer habits are putting pressure on insurers to adjust their prices to maintain service quality. For example, the rise in the prices of medical materials and services directly impacts health insurance policies. At the same time, the cost of spare parts and vehicle repairs increases the cost of car insurance.
Furthermore, climate change has increased the risks associated with natural disasters, such as the recent DANA in Valencia and its devastating impact. Added to this is the increase in the claim rate in some sectors, which requires insurers to guarantee the economic sustainability of their operations.

The rise in insurance premiums mainly affects health insurance.

A constant demand for health insurance

Health insurance is one of the products that has grown significantly in recent years, along with associated costs. According to data from the INE, the Spanish National Statistics Institute, health insurance premiums have risen by 12.5% from 2020—when the average per person was €455.10—to 2023 (€512.48 average per person).
In 2025, experts expect an average increase of 6.2% in premiums for this type of insurance in Spain, below the European average. This price increase is mainly due to the increased use of private medical services, driven by the limitations of the public system, and the increased demand for care in areas such as mental health and chronic diseases. Healthcare costs are expected to grow by around 10.4% globally, mainly due to the concentration of hospital groups, the adoption of state-of-the-art technology (e.g., robotic surgery or expensive drugs) and the need to attract or retain medical talent.

What insurance companies plan for 2025

However, it is not all bad news. Many insurers, such as AXA, are committed to incorporating complementary prevention and wellness services in response to the growing demand for mental health care and healthy lifestyle programmes. They aim to improve the customer experience and make it more efficient through digital transformation and the use of Artificial Intelligence, such as the advance of telemedicine consultations, to optimise diagnoses, treatments, and administrative processes. In summary, insurers strive to improve management efficiency to contain the rising service cost for the user. They will also choose to balance the adjustment of premiums not to deteriorate the quality of care or discourage the contracting or renewal of policies.

Impact on car and home insurance

Car insurance is also experiencing significant adjustments this year, with increases of up to 10% compared to 2023. This increase is due to inflation, the scarcity of spare parts and the rising cost of repairs, spare parts and services. In addition, the increasing accident rate in some segments has led insurers to take measures to guarantee the sector’s sustainability. The rise in premiums also affects home insurance, for example. These branches are affected by the shortage and consequent increase in the cost of workforce and suppliers, such as qualified experts and garages. In addition, after several years of variable claims and increased service costs, insurers are adjusting premiums so as not to neglect quality.

Loyalty has its rewards

However, the main managers of reinsurance and insurance companies point out that premium increases will be more moderate than in previous years and that price adjustments will be carried out with greater selectivity, rewarding customer loyalty and good behaviour.
For consumers, price adjustments in some insurance branches mean that insurers further personalise products and prices and offer more digital services.
At our insurance agency, we are confident that market consolidation will bring more security and transparency to the final consumer. We will closely monitor these changes to provide you with personalised advice, always looking for the policy that best suits your needs and gives you peace of mind. We firmly believe that, in the face of a challenging future, proximity and professionalism make all the difference. Together, we will face 2025 with optimism and with solutions tailored to each client’s needs!

More significant margins with comprehensive management

Another aspect to consider is that the comprehensive management of an insurance portfolio by the same intermediary helps obtain better conditions. When a client trusts us to manage all their policies – such as health, car, home, life, business, etc. – they become a more valuable client for the insurer. This can translate into better conditions at renewals, as insurers aim to retain customers with several contracts. By managing all your insurance comprehensively, Dylsi has more tools to protect your interests. We can negotiate discounts or better conditions, ensure priority attention in claims, and offer you personalised solutions that adapt to your needs and budget.
Trusting a single mediator reduces the economic impact, simplifies management, and reinforces your protection in the long term.

The importance of being insured

It’s common to think of insurance as an unnecessary expense until you really need it. But when a car accident, serious illness, or disaster strikes your home, having the right insurance can make the difference between dealing with the situation with peace of mind or facing a significant financial problem. As the saying goes: “You don’t need insurance… until you really need it.”
Whether for individuals or companies, insurance is an essential tool to protect what we value most. From basic coverages to more comprehensive options, a good policy ensures that you’re prepared for the unexpected.

We are here to assist you

At Dylsi, we understand that the insurance industry can be complex and that premium increases create uncertainty. That’s why we offer a personalised service to answer all your questions and help you find the solution that suits you best.
You can contact us via WhatsApp, phone, email or by visiting us at our office in Calvià. No matter which channel you choose, we’re always here to help you protect what matters most to you.

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